BUY PRICE is the price you pay your Supplier for an item. (When you create a Purchase Order, QuickBooks Commerce will also suggest that you use the item’s Buy Price). For example, you paid your Supplier $5 for a T-shirt. This is your Buy Price.
The MOVING AVERAGE COST (MAC) is recalculated every time you acquire more stock. Your item may start out with a Buy Price of $5.00, but that Buy Price may eventually become $6 or $7 or even $100, but the Moving Average Cost will always get the average of your previous and your current Costs. This results in a smoothed out average of your Cost's growth and decline. Click here to learn more about MAC.